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Insurance for Medical Staffing Agencies

medical staffing agencies need insurance 

At Homewood Insurance, we provide tailored coverage to protect medical staffing companies against the unique risks of this business. This page explains what your insurance should include, the typical costs of coverage, and which practices can raise premiums or lead to denials.

  • What Insurance Includes – breakdown of Professional Liability insurance and General Liability insurance for staffing agencies.
  • Cost of Coverage – typical premium ranges and the key factors that drive pricing.
  • Higher-Risk Exposures – activities that can elevate premiums or cause insurers to decline coverage.
  • Why Work With Homewood – how we help staffing agencies secure affordable, comprehensive coverage.

Get a Free Quote Now

The fastest way to protect your staffing agency is to complete our quick quote form. Homewood will shop multiple carriers and provide a tailored proposal that keeps your business secure and competitive.

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Insurance for medical staffing agencies can include:

  • Professional Liability insurance (Errors & Omissions / Malpractice) covers claims tied to improper placements, inadequate vetting, or negligence leading to patient harm.
  • General Liability insurance covers non-clinical risks such as slip-and-fall accidents at agency offices, property damage, or injuries at recruitment events.
  • Optional coverage for hosted training sessions, job fairs, mobile outreach, and community events.
  • Includes protection for non-clinical staff such as HR personnel, schedulers, and field supervisors.
  • Limits typically $1M per claim / $3M aggregate, with umbrella and excess coverage available for larger firms.
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Insurance for Medical Staffing Agencies can include:

Malpractice or liability insurance can provide essential protection against these risks:

  1. Professional Liability (Malpractice) Insurance for Staffing Agencies

    1. Covers claims of negligent placement, errors in credentialing, or failure to supervise contract staff.
    2. Defense for lawsuits alleging malpractice by placed clinicians, where the agency shares vicarious liability.
    3. Protection against errors in scheduling, background checks, or compliance with licensing.
    4. Optional endorsements for locum tenens coverage, cyber liability, and employment practices liability. 

  2. General Liability Insurance for Staffing Agencies

    1. Coverage for bodily injury or property damage at agency offices, orientation sessions, or job fairs.
    2. Includes advertising injury protection for disputes tied to job listings, branding, or social media.
    3. Meets landlord, vendor, and staffing contract requirements for third-party liability coverage.
    4. Optional protection for community workshops, credentialing events, and educational session.

Homewood Insurance Group work with  different insurance carriers to find you the most suitable coverage at the best price.

Get a quick quote now.

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Cost of Coverage:

Premiums are influenced by specialty mix, litigation environment, facility size, and claims history. Carriers also evaluate risk management protocols such as credentialing, peer review, and informed consent.

Professional Liability (PL / Malpractice) – Estimated Ranges

  • Small agencies: $5,000–$10,000 annually.
  • Mid-sized firms (multi-specialty, multiple locations): $12,000–$25,000 annually.
  • Large national agencies or those placing high-risk specialties: $40,000+ annually.

Premiums depend on specialties placed, claims history, and vetting protocols.

General Liability (GL) – Estimated Ranges:

  • Small agencies: $1,000–$2,500 annually.
  • Mid-sized agencies: $3,000–$6,000 annually.
  • Large or multi-state firms: $7,500–$12,000+ annually.

Pricing is influenced by office size, recruitment activities, training sessions, and event exposure.

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High-Risk Procedures and their Impact on your Premiums

While most staffing operations are insurable, carriers raise premiums—or in rare cases deny coverage—if agencies operate in high-liability niches without strong controls. Risk factors include staffing high-risk specialties, poor credentialing, and weak contract management.

➡ See the table below for examples of high-risk activities.

High-Risk Activity Why It’s Higher Risk Potential Insurance Impact
Staffing High-Risk Specialties Anesthesiologists, surgeons, OB/GYNs, and other specialties tied to severe malpractice claims. Premiums increase significantly; some carriers may deny coverage without excess policies.
Placing Staff in High-Risk Facilities ICUs, ERs, correctional care, and high-litigation states amplify malpractice exposures. Rate hikes or exclusions; correctional care often uninsurable in standard markets.
Inadequate Credentialing or Screening Failure to vet licenses, backgrounds, or abuse prevention increases vicarious liability. Coverage may be denied; premiums rise sharply if processes are insufficient.
Weak Contract Management Unfavorable indemnification clauses shift liability onto the agency. Defense complications increase premiums; claims may be denied under contract gaps.
Neglecting Safety & Compliance Protocols Gaps in infection control, cyber security, or staff training raise GL and PL claims. Premium surcharges or exclusions; weak compliance may lead to denial.

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What types of Insurance do medical Staffing Agencies need?

 
General Liability Insurance

General Liability Insurance

General Liability covers medical expenses and attorney fees which result from bodily injuries and property damage that your facility or organization could be legally responsible for.
 
 
Professional Liability Insurance

Professional Liability Insurance

Also known as malpractice insurance, this  protects medical staffing agencies against claims related to malpractice, negligence, or injury resulting from resident care. Staff members will typically be covered by professional liability insurance.
 
 
sexual-molestation

Sexual Abuse and Molestation Insurance

Provides coverage for medical staffing agencies against claims arising from alleged sexual misconduct or molestation by an employee or other representative of your organization. Essential for the healthcare industry.
 
 
Commercial Property Insurance

Commercial Property Insurance

This protects your facilities against damage or loss to your buildings, equipment, and other property, which can happen as the result of various risks such as fire, theft, or vandalism.
 
 
workers compensation insurance

Workers Compensation Insurance

Workers Compensation Insurance is usually mandated by law. It protects medical staffing agencies and employees in case of work-related injuries or illnesses.
 
 
Cyber Liability Insurance

Cyber Liability Insurance

Covers you against financial losses associated with data breaches, cyber attacks, and other cyber incidents. Insurers will usually conduct rigorous testing of your online system to fix vulnerabilities as part of this policy.
 

Why Work With Homewood

Homewood Insurance specializes in healthcare liability insurance. We help staffing agencies:

  • Secure GL and PL coverage that meets client and contract requirements.
  • Add optional protection for abuse/molestation, cyber liability, or employment practices liability.
  • Strengthen your applications by reviewing credentialing, compliance, and contract terms to reduce underwriter concerns.
  • Compare multiple carriers to deliver affordable, comprehensive coverage for your staffing operations.

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Ralph Schiller

Ralph Schiller

Ralph specializes in sourcing the most suitable insurance for Medical Staffing Agencies at the best price. You can call him or fill out the form and he will get your message directly.